US Sanctions Xinbi Guarantee for Facilitating Cyber Scams and Money Laundering
The US Treasury has sanctioned Xinbi Guarantee, a Chinese-language online marketplace accused of facilitating cyber scams, fraud, and money laundering. The platform processed over $24 billion in cryptocurrency and fiat since 2022.
Xinbi operated as an escrow service connecting scam operators with vendors selling illicit goods and services, including those linked to North Korean hackers and other sanctioned groups.
The marketplace's users employed a technique called 'substitution laundering,' where stolen funds were replaced with stablecoins sourced from separate illicit revenue streams. This made it harder for authorities to trace the origins of the funds.
The US Treasury worked in conjunction with Tether, a major stablecoin issuer, to take down Xinbi. The Justice Department also seized the platform's Telegram infrastructure and froze over $52 million in cryptocurrency linked to the marketplace and its vendors.